Mumbai, Nov 30 (PTI) Five people were arrested for allegedly cheating firms and businessmen by promising them loans from prominent banks, Mumbai police said on Saturday.

On a specific tip-off, a team of Crime Branch's Unit 11 arrested Shaheb Chandiwala (46), Ravindra Kamat (58), Shafik Shaikh alias Mamu (40), Vijay Grover (36) and Hiren Bogayata (38), from outside a hotel in suburban Malad, an official said.

"Chandiwala works in the debt settlement department of a private financial company. The gang used to visit corporate firms nationwide to lure them with loans from prominent banks. In one case, they had promised a businessman Rs 600 crore loan and had taken Rs 77,000 from him," he said.

He said the gang booked advertisements in newspapers, and met businessmen, who responded to these advertisements, in hotels.

"The gang would get these businessmen to meet their accomplices who would pose as bank officials. They would play act other loan disbursal processes and would disappear after managing to knock off money from the victims," he added.

The five were held for similar crimes in the past in Andheri, Samta Nagar and Sewri, and two months ago, they had cheated two Uttar Pradesh businessmen of Rs 35.5 lakh, he said.

Police have have recovered Rs 4 lakh cash from them, besides cheques, documents of clients, mortgage related agreements, stamp duty slips, stamps and seals, the official informed.

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